SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows ⁽¹⁾

(in thousands)

Three Months Ended January 31,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$             446,207

$             268,627

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization and depreciation

62,888

57,294

Reduction of operating lease right-of-use assets

24,376

23,903

Amortization of capitalized costs to obtain revenue contracts

18,726

18,850

Stock-based compensation

180,652

134,227

Allowance for credit losses

6,059

3,700

Gain on sale of strategic investments

(55,077)

-

Amortization of bridge financing costs

1,000

-

Deferred income taxes

(101,332)

(65,495)

Other non-cash

(786)

4,535

Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities:

Accounts receivable

(119,571)

(237,360)

Inventories

(60,883)

(8,610)

Prepaid and other current assets

(96,916)

(355)

Other long-term assets

(72,096)

(54,196)

Accounts payable and accrued liabilities

(266,704)

(144,258)

Operating lease liabilities

(23,569)

(17,629)

Income taxes

(117,798)

50,416

Deferred revenue

87,034

81,102

Net cash provided by (used in) operating activities

(87,790)

114,751

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments

24,559

30,971

Purchases of short-term investments

(25,612)

(28,829)

Proceeds from sales of strategic investments

55,696

5,735

Purchases of strategic investments

(822)

-

Purchases of property and equipment

(40,391)

(43,500)

Acquisitions, net of cash acquired

(67,827)

-

Capitalization of software development costs

-

(624)

Net cash used in investing activities

(54,397)

(36,247)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of debt

(1,303)

(1,294)

Payment of bridge financing costs

(48,000)

-

Issuances of common stock

9,483

22,338

Payments for taxes related to net share settlement of equity awards

(147,330)

(92,095)

Purchase of equity forward contract

-

(45,000)

Purchases of treasury stock

-

(260,724)

Net cash used in financing activities

(187,150)

(376,775)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

9,320

35,675

Net change in cash, cash equivalents and restricted cash

(320,017)

(262,596)

Cash, cash equivalents and restricted cash, beginning of  year

1,441,187

1,419,864

Cash, cash equivalents and restricted cash, end of period

$          1,121,170

$          1,157,268

(1) Synopsys' first quarter of fiscal year 2024 and 2023 ended on February 3, 2024 and January 28, 2023, respectively. For presentation
purposes, we refer to the closest calendar month end. The first quarter of fiscal year 2024 included one extra week.